Coinbase stock price surged by over 12% on Friday as the crypto market rebounded. It ended the week at $165, much higher than the year-to-date low of $145. This COIN stock forecast outlines expectations as the company prepares to publish its financial results this week.
Coinbase Stock Pressured Ahead of Earnings
There are signs that Coinbase will report weak financial results this week, as Bitcoin and most altcoins retreated sharply in the final quarter of last year. The Bitcoin price declined from a record high of $126,300 in October and ended the year at around $90,000.
Coinbase stock is closely correlated with Bitcoin and other cryptocurrencies. Its trading volume typically rises when Bitcoin and top altcoins rally and drops when they fall.
This trend explains why analysts expect Coinbase’s revenue and profits to decline sharply. The average estimate is that its revenue will come in at $1.85 billion, down by 18% YoY. Its earnings per share (EPS) are expected to decline from $4.68 in Q4’24 to $1.01 in Q4’25.
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If this is correct, it means that the annual revenue will come in at $7.25 billion, up by 10% YoY, helped by the gains made earlier during the year. Earnings per share are expected to decline to $7.7, down from $9.58.
Coinbase’s business is facing notable challenges this year, including the ongoing crypto market crash, which has reduced the Bitcoin price to $70,000 and its market capitalization from a record high of $4.2 trillion to $2.3 trillion today.
On the positive side, management is implementing changes that will enhance its long-term performance. For example, the company recently launched a prediction market that has become highly popular, as evidenced by its use during the Super Bowl.
The company is also expanding into the cryptocurrency market and launching solutions for stocks and ETFs. It will begin offering tokenized stocks, a move that will help offset weakness in the crypto market.
Coinbase Stock Price Technical Analysis
The three-day chart shows that the COIN stock price bottomed at a crucial support level of $144.90, its lowest in September 2024, April 2023, and February 2024. Moving to this level helps explain why the stock has stabilized over the past few weeks.
It has moved below the 61.8% Fibonacci Retracement level at $190. Additionally, the stock remains below the 50-day and 100-day Exponential Moving Averages (EMAs), indicating that bears remain in control. It has also dropped below the Supertrend indicator.
Therefore, the Coinbase stock price is currently neutral. A crash below the key support level at $144 will signal that bears have prevailed and lead to further downside. However, a rebound is still possible now that it has found substantial support at $144.90.
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